In one of the country’s biggest office space transactions, the Essar Group signed a definitive agreement with Bengaluru-based RMZ Corp to sell Equinox Business Park – a 1.25 million sq feet facility in Mumbai – for ₹2,400 crore.

Equinox Business Park, which is owned by the Ruia family, is located adjacent to the Bandra Kurla Complex and houses leading market players such as Nissan, Acropolis, Crompton Greaves, Gilbarco Aegis and Lafarge besides Essar’s companies.

Paring debt the intention The move is part of Ruia family’s plan to divest non-core assets to pare debt.

Commenting on the deal, Essar’s Anshuman Ruia said: “This transaction fits into our strategy of successfully building businesses and actively managing the portfolio of assets to create and deliver value. This is in line with the present objective and focus of Essar to monetise non-core assets and de-leverage the balance sheet.”

Essar’s Executive Director (M&A) Sudip Rungta told BusinessLine that the Equinox Business Park was being developed by Essar group firm Equinox Realty Holding Ltd.

Why now? Asked why the company was selling the business park at a time of commercial real estate upswing, Rungta said it was because Essar had garnered a profitable deal.

He said the company was also planning a sale of other non-core assets, including some land parcels and a residential complex.

RMZ is expected to conclude the deal in six months. It will be a 100 per cent acquisition.

Currently, RMZ manages over 20 million sq ft of office space in different cities, and eyes an 80 million sq ft portfolio in the next three to five years. The company is backed by Qatar Investment Authority.

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Published on February 3, 2016